Food industry warns of supply shock over Super El Nino

India's food industry is warning of a potential supply shock due to a projected Super El Nino in 2027. This weather phenomenon could disrupt crop production, leading to higher food prices and inflation. The impact will be particularly severe on sugar and oilseed production in drought-affected states, and the livestock sector will also face increased feed costs. As a result, food prices may rise significantly, affecting consumers and the overall economy.

Why it matters

A potential Super El Nino event may disrupt crop production and lead to a supply shock in India's food industry. This could result in higher prices and reduced profitability for food companies.

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